What's the Difference Between an ITIN and an EIN?

An ITIN and an EIN are both tax identification numbers issued by the IRS, but they serve completely different purposes. An ITIN (Individual Taxpayer Identification Number) is issued to individuals who need to file U.S. tax returns but are not eligible for a Social Security Number, such as nonresident aliens, certain foreign nationals, and their dependents. An EIN (Employer Identification Number) is a business identification number used by companies, partnerships, nonprofits, trusts, and estates to identify themselves for tax purposes — it's essentially a Social Security Number for a business entity. Sole proprietors may use their own Social Security Number for their business taxes, but most choose to get an EIN for privacy and to open a business bank account. An EIN is free and can be obtained online from the IRS in minutes.